Precious Metals

There is a fascinating story from Robert Peston, the BBC’s business editor about his interview with Hank Paulson, who was the US treasury secretary at the time of the Lehman crisis.

Can the gold price be fundamentally related to some other economic variables?

March 16, 2014Inflationbanks, business lending, carry trade, inflation

Last Monday gold ended a week-long consolidation that saw it fall from $1354 to $1329, before rising strongly to over $1370 yesterday

Briefly: In our opinion short speculative positions (half) in silver and mining stocks are justified from the risk/reward perspective.

Bear markets can be devious creatures.

We previously emphasized that the situation in Ukraine was the main bullish factor for higher precious metals prices (mainly for the price of gold) and that remains to be the case.

Collin Kettell of Palisade Radio interviewed me regarding my latest thoughts on precious metals.  

From last Friday’s close at $1322, gold opened strongly on Monday trading, as high as $1355 before losing two thirds of the rise on Tuesday.

An interesting aspect of the gold market is that most analysis is off track, with the reasons put forward for being bullish generally being further off-track than the reasons put forward for being bearish.